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Record 6% of 401(k) Holders Withdraw for Hardship in 2025

3/11/2026

25 2 Full Breakdown

Summary

Story summary

In 2025, a record 6% of Americans with 401(k) plans took hardship withdrawals.
The share rose from 4.8% in 2024, with 4.2 million participants tapping into retirement savings to avoid eviction or pay medical bills.
The median withdrawal was $1,900.
Average 401(k) balances rose 11% to $146,100, driven by market growth and consistent saving.
Vanguard noted that changes in withdrawal rules may have contributed to the rise in hardship withdrawals.

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Story summary

In 2025, a record 6% of Americans with 401(k) plans took hardship withdrawals.
The share rose from 4.8% in 2024, with 4.2 million participants tapping into retirement savings to avoid eviction or pay medical bills.
The median withdrawal was $1,900.
Average 401(k) balances rose 11% to $146,100, driven by market growth and consistent saving.
Vanguard noted that changes in withdrawal rules may have contributed to the rise in hardship withdrawals.